3B Materials management Flashcards
Define efficiency
The way in which a business uses the resources available to it.
Define effectiveness
The extent of which the started objectives can be achieved.
Define business strategies
Are a set of actions undertaken to achieve a business objective.
Eg- advertising to reach a certain profit margin for a period of time.
Define just in time
Is the complex tracking of supplies so that they are ordered just when they are needed.
- Achieved through computer system.
- Eg toyota- “Kanban system”
Advantages of Just in time
- Don’t have to store resources.
- Resources wont go off (eliminates waste).
Disadvantages of just in time
- If supply chain fails, production may cease.
- Less time of quality checks on resources purchased.
Define forecasting
predicting what materials will be required and in what quantities for production.
-Too much= takes up space
-Too much= halts production
eg- Foxtel
Advantages of forecasting
- Can help prevent over-ordering
- Can predict seasonal changes in order to reduce orders to save costs and wastes.
Disadvantages of forecasting
-Loss of time analyzing and track all potential impacts on supply chain
Define master production schedule
Breaking down the whole production process into stages. The stages determine what is required, what needs to be produced and when.
Advantages of the master production schedule
- Reduces general wastage
- Easy for new staff to learn
Disadvantages of the master production schedule
- Hard to account for every situation
- Not very flexible
Define materials requirement planning
Developing a detailed list of all materials involved in the production to meet specialized orders. Businesses need to consider stock on hand
Advantages of materials requirement management
- Reduction in waste
- Reduction in storage space being taken up
Disadvantages of materials requirement management
-Initially expensive to set up
